NRS 704B.300 Authority
of provider to sell energy, capacity or ancillary services; limitations;
provider is not public utility because of transaction; jurisdiction of
Commission; prohibition.

NRS 704B.310 Application
for approval of proposed transaction: Time for filing; contents;
confidentiality of certain information; public notice and hearing; review by
Commission; terms, conditions and payments as part of approval; time within
which Commission must act.

NRS 704B.350 Duty
of electric utility to provide certain components of electric service; duty of
Commission to establish just, reasonable and nondiscriminatory rates; effect of
chapter on existing rights and requirements under federal and state law.

NRS 704B.010Definitions.As
used in this chapter, unless the context otherwise requires, the words and
terms defined in NRS 704B.020 to 704B.140, inclusive, have the meanings ascribed to
them in those sections.

1. “Electric utility” means any public
utility or successor in interest that:

(a) Is in the business of providing electric
service to customers;

(b) Holds a certificate of public convenience and
necessity issued or transferred pursuant to chapter
704 of NRS; and

(c) In the most recently completed calendar year
or in any other calendar year within the 7 calendar years immediately preceding
the most recently completed calendar year, had a gross operating revenue of
$250,000,000 or more in this state.

2. The term does not include a cooperative
association, nonprofit corporation, nonprofit association or provider of
electric service which is declared to be a public utility pursuant to NRS 704.673 and which provides service
only to its members.

NRS 704B.060“Electric utility that primarily serves densely populated
counties” defined.“Electric
utility that primarily serves densely populated counties” means an electric
utility that, with regard to the provision of electric service, derives more of
its annual gross operating revenue in this state from customers located in
counties whose population is 700,000 or more than it does from customers
located in counties whose population is less than 700,000.

NRS 704B.070“Electric utility that primarily serves less densely populated
counties” defined.“Electric
utility that primarily serves less densely populated counties” means an
electric utility that, with regard to the provision of electric service,
derives more of its annual gross operating revenue in this state from customers
located in counties whose population is less than 700,000 than it does from
customers located in counties whose population is 700,000 or more.

NRS 704B.100“Generation asset” defined.“Generation
asset” means any plant, facility, equipment or system which is located within
or outside this state and which converts nonelectrical energy into electrical energy
or otherwise produces electrical energy.

1. The energy, capacity or ancillary
services and any increased or additional energy, capacity or ancillary services
which are:

(a) Made available from a generation asset that
is not owned by an electric utility or is not subject to contractual
commitments to an electric utility that make the energy, capacity or ancillary
services from the generation asset unavailable for purchase by an eligible
customer; and

(b) Able to be delivered to an eligible customer.

2. Any increased energy, capacity or
ancillary services made available from a generation asset pursuant to an
agreement described in NRS 704B.260.

NRS 704B.130“Provider of new electric resources” and “provider” defined.“Provider of new electric resources” and
“provider” mean a person who makes energy, capacity or ancillary services from
a new electric resource available to an eligible customer.

1. The provisions of this chapter do not
alter, diminish or otherwise affect any rights or obligations arising under any
contract which requires an electric utility to purchase energy, capacity or
ancillary services from another party and which exists on July 17, 2001.

2. Each electric utility or its assignee
shall comply with the terms of any contract which requires the electric utility
or its assignee to purchase energy, capacity or ancillary services from another
party and which exists on July 17, 2001.

NRS 704B.210Submission of report to Legislative Commission.The Commission shall, not later than 2
business days after receiving a request in writing from the Legislative
Commission, submit to the Legislative Commission a written report which
summarizes for the period requested by the Legislative Commission:

1. Each application which was filed with
the Commission pursuant to the provisions of this chapter and which requested
approval of a proposed transaction between an eligible customer and a provider
of new electric resources;

2. The information that the eligible
customer included with the application;

3. The findings of the Commission
concerning the effect of the proposed transaction on the public interest; and

4. Whether the Commission approved the
application and, if so, the effective date of the proposed transaction, the
terms and conditions of the proposed transaction, and the terms, conditions and
payments ordered by the Commission.

NRS 704B.260Electric utilities may enter into certain agreements relating to
generation assets; increased energy, capacity or ancillary services deemed new
electric resource; ownership and use of new electric resource; limitations;
duties and restrictions imposed on Commission.

1. Except as otherwise provided in this
section, an electric utility may, at its discretion, enter into agreements
relating to its generation assets and the energy, capacity or ancillary
services provided by its generation assets with one or more other persons who
are not electric utilities. Such agreements, without limitation:

(a) May include agreements to construct or
install a new generation asset on real property that is adjacent to an existing
generation asset owned by the electric utility; and

(b) May provide for the sharing of available
common facilities with the existing generation asset or the reengineering,
repowering or expansion of the existing generation asset to generate energy
more efficiently and at a lower cost and to make more energy available to
customers in this state.

2. Any increased energy, capacity or
ancillary services made available from a new generation asset or an existing
generation asset pursuant to an agreement described in subsection 1 shall be deemed
to be a new electric resource that may be:

(a) Owned by the parties to the agreement who are
not electric utilities; and

(b) Used or consumed by such parties for their
own purposes, sold at wholesale by such parties or sold by such parties to one
or more eligible customers pursuant to the provisions of this chapter.

3. A transaction undertaken pursuant to an
agreement described in subsection 1:

(a) Must not impair system reliability or the
ability of the electric utility to provide electric service to its customers;
and

4. The provisions of this section do not
exempt any party to an agreement described in subsection 1 from any applicable
statutory or regulatory requirements relating to siting, construction and
operation of a generation asset.

5. The Commission shall encourage the
development of new electric resources and shall not exercise its regulatory
authority in a manner that unnecessarily or unreasonably restricts, conditions
or discourages any agreement described in subsection 1 that is likely to result
in increased energy, capacity or ancillary services from a generation asset or
improved or more efficient operation or management of a generation asset.

2. A provider of new electric resources
shall not sell energy, capacity or ancillary services to an eligible customer
if the transaction violates the provisions of this chapter.

3. A provider of new electric resources
that sells energy, capacity or ancillary services to an eligible customer
pursuant to the provisions of this chapter:

(a) Does not become and shall not be deemed to be
a public utility solely because of that transaction; and

(b) Does not become and shall not be deemed to be
subject to the jurisdiction of the Commission except as otherwise provided in
this chapter or by specific statute.

4. If a provider of new electric resources
is not a public utility in this state and is not otherwise authorized by the
provisions of a specific statute to sell energy, capacity or ancillary services
at retail in this state, the provider shall not sell energy, capacity or
ancillary services at retail in this state to a person or entity that is not an
eligible customer.

NRS 704B.310Application for approval of proposed transaction: Time for
filing; contents; confidentiality of certain information; public notice and
hearing; review by Commission; terms, conditions and payments as part of
approval; time within which Commission must act.

1. An eligible customer that is purchasing
bundled electric service for all or any part of its load from an electric
utility shall not purchase energy, capacity or ancillary services from a
provider of new electric resources unless:

(a) The eligible customer files an application
with the Commission not later than 180 days before the date on which the
eligible customer intends to begin purchasing energy, capacity or ancillary
services from the provider, except that the Commission may allow the eligible
customer to file the application within any shorter period that the Commission
deems appropriate; and

(b) The Commission approves the application by a
written order issued in accordance with the provisions of this section and NRS 704B.320.

2. Except as otherwise provided in
subsection 3, each application filed pursuant to this section must include:

(a) Information demonstrating that the person
filing the application is an eligible customer;

(b) Information demonstrating that the proposed
provider will provide energy, capacity or ancillary services from a new
electric resource;

(c) Information concerning the terms and
conditions of the proposed transaction that is necessary for the Commission to
evaluate the impact of the proposed transaction on customers and the public
interest, including, without limitation, information concerning the duration of
the proposed transaction and the amount of energy, capacity or ancillary
services to be purchased from the provider; and

(d) Any other information required pursuant to
the regulations adopted by the Commission.

3. Except as otherwise provided in NRS 704B.320, the Commission shall not require the
eligible customer or provider to disclose:

(a) The price that is being paid by the eligible
customer to purchase energy, capacity or ancillary services from the provider;
or

(b) Any other terms or conditions of the proposed
transaction that the Commission determines are commercially sensitive.

4. The Commission shall provide public notice
of the application of the eligible customer and an opportunity for a hearing on
the application in a manner that is consistent with the provisions of NRS 703.320 and the regulations adopted by
the Commission.

5. The Commission shall approve the
application of the eligible customer unless the Commission finds that the
proposed transaction:

(a) Will be contrary to the public interest; or

(b) Does not comply with the provisions of NRS 704B.320, if those provisions apply to the
proposed transaction.

6. In determining whether the proposed
transaction will be contrary to the public interest, the Commission shall
consider, without limitation:

(a) Whether the electric utility that has been
providing electric service to the eligible customer will be burdened by
increased costs as a result of the proposed transaction or whether any
remaining customer of the electric utility will pay increased costs for
electric service as a result of the proposed transaction;

(b) Whether the proposed transaction will impair
system reliability or the ability of the electric utility to provide electric
service to its remaining customers; and

(c) Whether the proposed transaction will add
energy, capacity or ancillary services to the supply in this State.

7. If the Commission approves the
application of the eligible customer:

(a) The eligible customer shall not begin
purchasing energy, capacity or ancillary services from the provider pursuant to
the proposed transaction sooner than 180 days after the date on which the
application was filed, unless the Commission allows the eligible customer to
begin purchasing energy, capacity or ancillary services from the provider at an
earlier date; and

(b) The Commission shall order such terms,
conditions and payments as the Commission deems necessary and appropriate to
ensure that the proposed transaction will not be contrary to the public
interest. Such terms, conditions and payments:

(1) Must be fair and nondiscriminatory as
between the eligible customer and the remaining customers of the electric
utility; and

(2) Must include, without limitation:

(I) Payment by the eligible customer
to the electric utility of the eligible customer’s load-share portion of any
unrecovered balance in the deferred accounts of the electric utility; and

(II) Payment by the eligible
customer of the annual assessment and any other tax, fee or assessment required
by NRS 704B.360.

8. If the Commission does not enter a
final order on the application of the eligible customer within 150 days after
the date on which the application was filed with the Commission:

(a) The application shall be deemed to be
approved by the Commission; and

(b) The eligible customer may begin purchasing
energy, capacity or ancillary services from the provider pursuant to the
proposed transaction.

1. For eligible customers whose loads are
in the service territory of an electric utility that primarily serves densely
populated counties, the aggregate amount of energy that all such eligible
customers purchase from providers of new electric resources before July 1,
2003, must not exceed 50 percent of the difference between the existing supply
of energy generated in this State that is available to the electric utility and
the existing demand for energy in this State that is consumed by the customers
of the electric utility, as determined by the Commission.

2. An eligible customer that is a
nongovernmental commercial or industrial end-use customer whose load is in the
service territory of an electric utility that primarily serves densely
populated counties shall not purchase energy, capacity or ancillary services
from a provider of new electric resources unless, as part of the proposed
transaction, the eligible customer agrees to:

(a) Contract with the provider to purchase:

(1) An additional amount of energy which
is equal to 10 percent of the total amount of energy that the eligible customer
is purchasing for its own use under the proposed transaction and which is
purchased at the same price, terms and conditions as the energy purchased by
the eligible customer for its own use; and

(2) The capacity and ancillary services
associated with the additional amount of energy at the same price, terms and
conditions as the capacity and ancillary services purchased by the eligible
customer for its own use; and

(b) Offers to assign the rights to the contract
to the electric utility for use by the remaining customers of the electric
utility.

3. If an eligible customer is subject to
the provisions of subsection 2, the eligible customer shall include with its
application filed pursuant to NRS 704B.310 all
information concerning the contract offered to the electric utility that is
necessary for the Commission to determine whether it is in the best interest of
the remaining customers of the electric utility for the electric utility to
accept the rights to the contract. Such information must include, without
limitation, the amount of the energy and capacity to be purchased under the
contract, the price of the energy, capacity and ancillary services and the
duration of the contract.

4. Notwithstanding any specific statute to
the contrary, information concerning the price of the energy, capacity and
ancillary services and any other terms or conditions of the contract that the
Commission determines are commercially sensitive:

(a) Must not be disclosed by the Commission
except to the Regulatory Operations Staff of the Commission, the Consumer’s
Advocate, the staff of the Consumer’s Advocate and the electric utility for the
purposes of carrying out the provisions of this section; and

(b) Except as otherwise provided in NRS 239.0115, shall be deemed to be
confidential for all other purposes, and the Commission shall take such actions
as are necessary to protect the confidentiality of such information.

5. If the Commission determines that the
contract:

(a) Is not in the best interest of the remaining
customers of the electric utility, the electric utility shall not accept the
rights to the contract, and the eligible customer is entitled to all rights to
the contract.

(b) Is in the best interest of the remaining
customers of the electric utility, the electric utility shall accept the rights
to the contract and the eligible customer shall assign all rights to the
contract to the electric utility. A contract that is assigned to the electric
utility pursuant to this paragraph shall be deemed to be an approved part of
the resource plan of the electric utility and a prudent investment, and the
electric utility may recover all costs for the energy, capacity and ancillary
services acquired pursuant to the contract. To the extent practicable, the
Commission shall take actions to ensure that the electric utility uses the
energy, capacity and ancillary services acquired pursuant to each such contract
only for the benefit of the remaining customers of the electric utility that
are not eligible customers, with a preference for the remaining customers of
the electric utility that are residential customers with small loads.

6. The provisions of this section do not
exempt the electric utility, in whole or in part, from the requirements imposed
on the electric utility pursuant to NRS
704.7801 to 704.7828, inclusive,
to comply with its portfolio standard. The Commission shall not take any
actions pursuant to this section that conflict with or diminish those
requirements.

NRS 704B.325Purchase of energy, capacity or ancillary services from
alternative provider after approval of original transaction: Rights and
obligations of eligible customers; expedited review by Commission; limited
disclosure of certain information.

1. An eligible customer that is purchasing
energy, capacity or ancillary services from a provider of new electric
resources may purchase energy, capacity or ancillary services from an
alternative provider without obtaining the approval of the Commission if the
terms and conditions of the transaction with the alternative provider, other
than the price of the energy, capacity or ancillary services, conform to the
terms and conditions of the transaction that was originally approved by the
Commission with respect to the eligible customer.

2. If any terms and conditions of the
transaction with the alternative provider, other than the price of the energy,
capacity or ancillary services, do not conform to the terms and conditions of
the transaction that was originally approved by the Commission with respect to
the eligible customer, the eligible customer must obtain approval from the
Commission before those nonconforming terms and conditions are enforceable.

3. If the eligible customer files a
request with the Commission for approval of any nonconforming terms and
conditions, the Commission shall review and make a determination concerning the
request on an expedited basis.

4. Notwithstanding any specific statute to
the contrary, information concerning any terms and conditions of the
transaction with the alternative provider that the Commission determines are
commercially sensitive:

(a) Must not be disclosed by the Commission
except to the Regulatory Operations Staff of the Commission, the Consumer’s
Advocate, the staff of the Consumer’s Advocate and the affected electric
utility for the purposes of carrying out the provisions of this section; and

(b) Except as otherwise provided in NRS 239.0115, shall be deemed to be
confidential for all other purposes, and the Commission shall take such actions
as are necessary to protect the confidentiality of such information.

1. If an eligible customer is purchasing
energy, capacity or ancillary services from a provider of new electric
resources, the eligible customer may, pursuant to tariffs approved by the
Commission, replace some or all, but not less than all at a single time-of-use
meter, of the energy, capacity or ancillary services purchased from the
provider of new electric resources with energy, capacity or ancillary services
purchased from an electric utility.

2. The tariffs approved by the Commission
pursuant to this section must include, without limitation:

(a) Provisions requiring the eligible customer to
pay any incremental costs that are incurred by the electric utility to provide
energy to the eligible customer;

(b) Provisions requiring the eligible customer to
provide reasonable and adequate notice to the electric utility;

(c) Provisions establishing minimum terms during
which the eligible customer must continue to purchase energy from the electric
utility; and

(d) Any other provisions that the Commission determines
are necessary and reasonable to carry out and enforce the provisions of this
section.

1. A provider of new electric resources
shall not sell energy, capacity or ancillary services to an eligible customer
unless the customer has a time-of-use meter installed at the point of delivery
of energy to the eligible customer.

2. An electric utility shall install a
time-of-use meter at each point of delivery of energy to the eligible customer
if the eligible customer does not have a time-of-use meter at that point of
delivery. If the eligible customer is:

(a) A nongovernmental commercial or industrial
end-use customer, the eligible customer or the provider shall pay all costs for
the time-of-use meter and for installation of the time-of-use meter by the
electric utility.

(b) A governmental entity, the provider shall pay
all costs for the time-of-use meter and for installation of the time-of-use
meter by the electric utility.

3. Not more than one person or entity may
sell the energy that is delivered to an eligible customer through any one
time-of-use meter.

4. The provisions of this section do not
prohibit:

(a) An eligible customer from having more than
one time-of-use meter installed for the same service location; or

(b) An eligible customer from installing any
other meter or equipment that is necessary or appropriate to the transaction
with the provider, if such a meter or equipment is otherwise consistent with
system reliability.

NRS 704B.350Duty of electric utility to provide certain components of
electric service; duty of Commission to establish just, reasonable and
nondiscriminatory rates; effect of chapter on existing rights and requirements
under federal and state law.

1. An electric utility shall provide all
transmission, distribution, metering and other components of electric service
that are necessary for a provider of new electric resources to sell energy,
capacity and ancillary services to an eligible customer pursuant to the
provisions of this chapter. An electric utility shall provide each such
component of electric service pursuant to the tariffs and service agreements
filed with and approved by the appropriate regulatory authorities having
jurisdiction over each such component of electric service.

2. For each such component of electric
service that is within the jurisdiction of the Commission, the Commission shall
establish just, reasonable and nondiscriminatory rates.

3. The provisions of this chapter do not
enlarge or expand any existing rights under federal law or create any other
rights with regard to the transmission system of the electric utility.

4. When providing service pursuant to this
chapter, an electric utility is subject to all applicable statutes and
regulations of this State and the United States.

2. Each person or entity that is
responsible for billing an eligible customer shall ensure that the amount which
the eligible customer must pay pursuant to paragraph (b) of subsection 1 is set
forth as a separate item or entry on each bill submitted to the eligible
customer.

3. If an eligible customer to whom an
order is issued pursuant to subsection 1 thereafter purchases energy, capacity
or ancillary services from an alternative provider pursuant to NRS 704B.325 without obtaining the approval of the
Commission, the order issued pursuant to subsection 1 continues to apply to the
eligible customer.

4. Upon petition by a governmental entity
to which a tax, fee or assessment must be remitted pursuant to this section,
the Commission may limit, suspend or revoke any order issued to an eligible
customer by the Commission pursuant to NRS 704B.310
and 704B.320 if the Commission, after providing an
appropriate notice and hearing, determines that the eligible customer has
failed to pay the tax, fee or assessment.